The 2011 Import and Export Market for Hearing Aids in Malaysia by ICONGroup


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									   The 2011 Import and Export
   Market for Hearing Aids in

                         Professor Philip M. Parker, Ph. D.
                      Chaired Professor of Management Science
                    INSEAD (Singapore & Fontainebleau, France)                                      ©2011 ICON Group Ltd.

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this report.                                                                   ©2011 ICON Group Ltd.

                                About the Author
Dr. Philip M. Parker is the Eli Lilly Chaired Professor of Innovation, Business and Society at
INSEAD where he has taught courses on multivariate statistics and global competitive strategy
since 1988. He has also taught courses at MIT, Stanford University, Harvard University, UCLA,
UCSD, and the Hong Kong University of Science and Technology. He is the author of six books
on the economic convergence of nations. These books introduce the notion of “physioeconomics”
which foresees a lack of global convergence in economic behaviors due to physiological and
physiographic forces. His latest book is "Physioeconomics: The Basis for Long-Run Economic
Growth" (MIT Press 2000). He has also published numerous articles in academic journals,
including The Rand Journal of Economics, Marketing Science, the Journal of International
Business Studies, Technological Forecasting and Social Change, International Journal of
Forecasting, the European Management Journal, the European Journal of Operational
Research, Journal of Marketing, International Journal of Research in Marketing, and Journal of
Marketing Research. He is also on the editorial boards of several academic journals.

Dr. Parker received his Ph.D. in Business Economics from the Wharton School of the University
of Pennsylvania and has Masters degrees in Finance and Banking (University of Aix-Marseille)
and Managerial Economics (Wharton). His undergraduate degrees are in mathematics, biology
and economics (minor in aeronautical engineering). He has consulted and/or taught courses in
Africa, the Middle East, Asia, Latin America, North America and Europe.

                                 About this Series
This series was created for international firms who rely on foreign export markets for a
substantial portion of their business or who might be threatened by foreign trade competition.
The estimates given in this report were created using a methodology developed by and under the
direct supervision of Professor Philip M. Parker, the Eli Lilly Chaired Professor of Innovation,
Business and Society, at INSEAD. The methodology, relying on historical figures of economic
growth and trade flows, estimates the market shares of some 150 countries for over 500 industrial
or product categories. The figures should be seen as market estimates, as opposed to historical
records, as these are projected for the current year of trade.

Some of the methodologies and research approaches used in this report have benefited from the
R&D Committee at INSEAD, whose research support is gratefully acknowledged. Additional
editorial assistance from Tiffany LaRochelle, ICON Group International, Inc., is also
acknowledged.                                                    ©2011 ICON Group Ltd.

                           About ICON Group Ltd.
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                                                               Contents        v

Table of Contents
1     INTRODUCTION AND METHODOLOGY                                         6
2     MALAYSIA AND THE WORLD MARKET                                        8
    2.1        Imports in Malaysia in 2011                                 8
    2.2        Exports from Malaysia in 2011                               8
3     IMPORTS IN MALAYSIA                                                  9
    3.1        Asia                                                        9
       3.1.1     China                                                     9
       3.1.2     Hong Kong                                                10
       3.1.3     Singapore                                                11
    3.2        Europe                                                     12
       3.2.1     Austria                                                  12
       3.2.2     Ireland                                                  13
       3.2.3     Sweden                                                   14
    3.3        North America & the Caribbean                              15
       3.3.1     Canada                                                   15
       3.3.2     the United States                                        16
    3.4        Oceana                                                     17
       3.4.1     Australia                                                17
4     EXPORTS FROM MALAYSIA                                               18
    4.1      Asia                                                         18
       4.1.1   Hong Kong                                                  18
       4.1.2   Singapore                                                  19
    4.2      North America & the Caribbean                                20
       4.2.1   the United States                                          20
    5.1        Disclaimers & Safe Harbor                                  21
    5.2        ICON Group Ltd. User Agreement Provisions                  22                                    ©2011 ICON Group Ltd.
                                                                  Hearing Aids in Malaysia       6

On the demand side, exporters and strategic planners focusing on hearing aids in Malaysia face a
number of questions. Which countries are supplying hearing aids to Malaysia? How important is
Malaysia compared to others in terms of the entire global and regional market? How much do the
imports of hearing aids vary from one country of origin to another in Malaysia? On the supply
side, Malaysia also exports hearing aids. Which countries receive the most exports from
Malaysia? How are these exports concentrated across buyers? What is the value of these exports
and which countries are the largest buyers?

This report was created for strategic planners, international marketing executives and
import/export managers who are concerned with the market for hearing aids in Malaysia. With
the globalization of this market, managers can no longer be contented with a local view. Nor can
managers be contented with out-of-date statistics which appear several years after the fact. I have
developed a methodology, based on macroeconomic and trade models, to estimate the market for
hearing aids for those countries serving Malaysia via exports, or supplying from Malaysia via
imports. It does so for the current year based on a variety of key historical indicators and
econometric models.

In what follows, Chapter 2 begins by summarizing where Malaysia fits into the world market for
imported and exported hearing aids. The total level of imports and exports on a worldwide basis,
and those for Malaysia in particular, is estimated using a model which aggregates across over 150
key country markets and projects these to the current year. From there, each country represents a
percent of the world market. This market is served from a number of competitive countries of
origin. Based on both demand- and supply-side dynamics, market shares by country of origin are
then calculated across each country market destination. These shares lead to a volume of import
and export values for each country and are aggregated to regional and world totals. In doing so,
we are able to obtain maximum likelihood estimates of both the value of each market and the
share that Malaysia is likely to receive this year. From these figures, rankings are calculated to
allow managers to prioritize Malaysia compared to other major country markets. In this way, all
the figures provided in this report are forecasts that can be combined with internal information
sources for strategic planning purposes.

After the worldwide summary in Chapter 2 of both imports and exports of hearing aids, Chapter 3
goes into detail on imports, but for each major country of origin serving Malaysia. A “major”
market is defined as a country where Malaysia represents a substantially large share of either
imports or exports. For each major country exporting to Malaysia, one can thus observe how
important Malaysia is to that exporting country compared to other countries of the world.
Chapter 4 does the same, but for exports of hearing aids originating from Malaysia, for each
major country of destination. In doing so, one can discover the share that Malaysia has in each
major market; this share value is often used as a measure of competitiveness for Malaysia. In all
cases, the total dollar volume and percentage share values by major trading partner are provided.
Combined, Chapters 3 and 4 present a the total picture for imports and exports of hearing aids to                                                     ©2011 ICON Group Ltd.
                                                                    Hearing Aids in Malaysia        7

and from Malaysia to and from all other major countries in the world. "Hearing Aids" as a
category is defined in this report following the definition given by the United Nations Statistics
Division Classification Registry using the Standard International Trade Classification, Revision 3
(SITC, Rev. 3). The SITC code that defined "hearing aids" is 89961 . For more information on
this definition, please refer to the following web site: .

This report is updated on an annual basis. To ensure that you have the most current version,
please check the web site of ICON Group at

Important Caveat. The figures should be seen as market estimates, as opposed to historical
records, as these are forecasted for the current year of trade. More importantly, in light of the fact
that unforeseeable factors might interrupt markets in achieving their reported levels, the figures
should be seen as estimates of potential. For example, "mad cow" disease, foot-and-mouth
disease, trade embargoes, military conflicts, acts of terrorism and other events will certainly
affect the actual trade flows recorded for a variety of industry or product categories. In such
cases, the difference between the numbers given in this report and the numbers actually observed
might be interpreted as the "net loss" or "net gain" due to these exogenous events affecting
regular trade flows that would have occurred had these events not have taken place.                                                       ©2011 ICON Group Ltd.
                                                                       Hearing Aids in Malaysia         8

2.1         IMPORTS IN MALAYSIA IN 2011
                           Imported Hearing Aids in Malaysia, 2011
                              (Structure of Foreign Import Competition)

Country of Origin             Rank         Value (000 US$)              % Share        Cumulative %
Singapore                         1                     1,733               28.79                  28.79
Australia                         2                     1,437               23.87                  52.66
Hong Kong                         3                       903               15.00                  67.66
the United States                 4                       716               11.89                  79.55
China                             5                       227                3.77                  83.32
Denmark                           6                       212                3.52                  86.84
Canada                            7                       181                3.01                  89.85
Sweden                            8                       178                2.96                  92.81
Austria                           9                       171                2.84                  95.65
Ireland                          10                       163                2.71                  98.36
Germany                          11                        99                1.64                 100.00
Total                                                   6,020              100.00                 100.00
    Source: Philip M. PARKER, Professor, INSEAD, copyright 2011,

                          Hearing Aids Exports from Malaysia, 2011
Country of Destination        Rank         Value (000 US$)              % Share        Cumulative %
Singapore                          1                   21,547               99.05                  99.05
Hong Kong                          2                      203                0.93                  99.99
the United States                  3                        3                0.01                 100.00
Total                                                  21,753              100.00                 100.00
    Source: Philip M. PARKER, Professor, INSEAD, copyright 2011,                                                          ©2011 ICON Group Ltd.
                                                                       Hearing Aids in Malaysia         9

3.1         ASIA
3.1.1          China
                            Hearing Aids Exports from China, 2011
Country of Destination        Rank         Value (000 US$)              % Share        Cumulative %
the United States                 1                  185,668                39.15                  39.15
Singapore                         2                  111,625                23.54                  62.68
Germany                           3                   70,571                14.88                  77.56
France                            4                   19,804                 4.18                  81.74
Denmark                           5                   18,581                 3.92                  85.66
Canada                            6                   13,620                 2.87                  88.53
China                             7                   13,081                 2.76                  91.29
Belgium                           8                    7,489                 1.58                  92.87
New Zealand                       9                    5,622                 1.19                  94.05
Australia                        10                    5,362                 1.13                  95.18
Japan                            11                    4,639                 0.98                  96.16
Hong Kong                        12                    3,910                 0.82                  96.99
Italy                            13                    3,736                 0.79                  97.77
Sweden                           14                    2,643                 0.56                  98.33
Norway                           15                    2,411                 0.51                  98.84
the Netherlands                  16                    1,995                 0.42                  99.26
Turkey                           17                      694                 0.15                  99.41
South Africa                     18                      375                 0.08                  99.48
Mexico                           19                      346                 0.07                  99.56
South Korea                      20                      313                 0.07                  99.62
Malaysia                         21                      227                 0.05                  99.67
Croatia                          22              
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